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At $7.8 billion, real estate investment in India rose to an all-time high in 2022.This was a 32% increment compared to the previous year. Investment in the real estate sector in India was $2.3 billion on a quarterly basis between October and December. On the quarterly basis, this showed a 64% increment. Altogether, the investments in the realty sector in India look impressive.
Considering the investments, foreign investments accounted for 57% of the share in 2022. The highest inflow of funds took place from Canada, at 37%. Investors in the US accounted for 15% of the funds.Among the remaining part of cash inflows, 40% came from domestic investors. In 2022, institutional investors contributed to 51% share of the overall investments. Developers contributed 32% of the overall amount in this share.
Among the cities that underwent the highest amounts of investments, Delhi-NCR tops the list. Mumbai followssuit, and both these cities together constituted 56% of the investment share in 2022. Also, development sites and land accounted for 48% of the share. The office sector accounted for another 35%.
Thanks to the consistent inflow of cash in the real estate industry, the concept of REITs can now be materialized. With the launch of REITs, investors will gain the freedom to enhance their investment portfolios. Experts also reveal that the capital inflow in the Indian real estate industry is likely to remain consistent. However, investors are likely to consider risks like recession that looms large over the markets in Europe and the US. The presence of institutional investors has been evident in the office sector in the real estate industry in India.
Real estate specialists also state that the prominence of partnership models can lead to risk mitigation. The operational challenges will come down, particularly considering the uncertainties in the real estate landscapes in India. This strong trend of investments is likely to continue in 2023 as well. This will bolster the Indian real estate sector & consolidate it further.
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